Global: DOJ Sues Adobe Over Hidden Termination Fees and Difficult Subscription Cancellations

The U.S. Department of Justice (DOJ) has filed a lawsuit against Adobe, accusing the company of deceiving consumers by concealing early-termination fees and complicating the process of canceling subscriptions.

In the complaint filed on Monday, the DOJ asserts that “Adobe has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms.”

The government claims Adobe steers consumers toward the “annual paid monthly” subscription plan without adequately informing them that canceling within the first year incurs substantial fees.

According to the complaint, Adobe only reveals these early-termination fees when subscribers attempt to cancel, turning the fees into a “powerful retention tool” that traps consumers in unwanted subscriptions.

“During enrollment, Adobe hides material terms of its APM plan in fine print and behind option textboxes and hyperlinks, providing disclosures that are designed to go unnoticed and that most consumers never see,” the complaint states. “Adobe then deters cancellations by employing an onerous and complicated cancellation process.”

Adobe plans to contest these claims in court. Dana Rao, Adobe’s General Counsel and Chief Trust Officer, stated, “Subscription services are convenient, flexible, and cost-effective, allowing users to choose the plan that best fits their needs, timeline, and budget. Our priority is to always ensure our customers have a positive experience. We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process.”

The DOJ’s complaint alleges that Adobe has violated federal laws designed to protect consumers. The government is seeking “injunctive relief, civil penalties, equitable monetary relief, as well as other relief.”

Adobe transitioned to a subscription model in 2012, requiring consumers to pay recurring fees for access to its software. Previously, users could purchase the software with a one-time payment. Subscriptions now constitute the majority of Adobe’s revenue.

This lawsuit follows a similar case by the Federal Trade Commission (FTC) against Amazon last year, accusing it of intentionally complicating the cancellation process for its Prime service subscriptions.